Docket No GU Filed: August 25, 2015

Transcription

1 BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION In re: Natural Gas Conservation Cost Recovery Clause. ) ) Filed: August 25, 2015 PETITION FOR APPROVAL OF SEBRING GAS SYSTEM, INC.'S CONSERVATION COST RECOVERY FACTOR 1 the requirements of this docket, hereby petitions the Commission for approval of the Company's conservation cost recovery factors for the period January 2015 through December In support hereof, the Company states: communications with respect to this Petition are: conservation cost recovery forms supplied by the Commission in a manner consistent with the Commission's instructions. ("Sebring"), through its undersigned attorneys and pursuant to 2) The name and address of the person authorized to receive notices and 3) Pmsuant to the requirements of this Docket, the Company has prefiled the l) The exact name of Petition and the address of its principal office is 3515 US Highway 27 South Sebring, Florida Norman H. Horton, Jr., Messer Caparello, P. A. Post Office Box Tallahassee, FL (850) (850) e-inail: nhorton@lawfla.com

2 of$5, ) As indicated in the prefiled forms, the recoverable conservation costs for the period 5) The resulting net total projected conservation costs to be recovered for the period December 2016 are: TS-1 TS-2 TS-3 TS-4 $ $ $ $ Respectfully submitted, NORMAN H. HORTON, JR., 2 appropriate levelized conservation cost recovery factors for the period January 2016 through January 2016 through December 2016 are projected to be $23, The conservation cost January 2015 through December 2015 are $28, Based upon projected sales the recovery true-up amount for the period January 2015 through December 2015 is an underrecovery foregoing conservation cost recovery factors, to be applied to customer bills for the period January 2016 through De,cember 2016, and to billings thereafter until other conservation cost recovery factors are approved by the Commission. WHEREFORE, requests the Commission to approve the DATED this 25th day of August, Post Office Box Tallahassee, FL Telephone: (850) Facsimile: (850) MESSER CAPARELLO, P. A. Attorneys for

3 DocketNo GU, ' CERTIFICATE OF SERVICE Beth Keating Gunster, Yoakley & Stewart, P.A. 215 South Monroe Street, Suite 60 I Tallahassee, FL bkeating@gunster.com Atlanta, GA ewade@aglresources.com Kelley Corbari/Leslie Ames Florida Public Service Commission 2540 Shumard Oak Boulevard Tallahassee, FL 2399 kcorbari@psc state.fllls Peoples Gas System Paula Brown KandiFloyd P.O. Box 111 Tampa, FL regdept&tecoenergy.com AGL Resources, Inc. Elizabeth Wade/Shannon Pierce Ten Peachtree Place Location ) I HEREBY CERTIFY that a true and correct copy ofthe foregoing Petition has been delivered by Electronic Mail or Hand Delivery to the following parties of record this 25th day of August, 2015 Florida Public Utilities Company/Florida Division of Chesapeake Utilities/Indiantown Mike Cassel 1750 SW 14th Street, Suite 200 Fernandina Beach, FL mcassel@fuuc.com Office of Public Counsel JR. Kelly /Charles Rehwinkel/Patricia Christensen c/o The Florida Legislature Macfarlane Ferguson Law Firm Ansley Watson, Jr./ Andrew Brown/ Ashley Kellgren P.O. Box 1531 Tampa, FL aw@macfar.com Florida City Gas Carolyn Bermudez 933 East 25th Street Hialiah, FL cbermude@agiresources.com Tallahassee, FL Jr kelly@leg.state.fl.us St. Joe Natural Gas Company, Inc. Mr. Charles A. Shoaf P.O. Box 549 Port St. Joe, FL \ andy@stioegas.com Norman H. Horton, Jr. Messer Caparello, P.A Centennial Place Tallahassee, FL West Madison Street, Rm 812

4 A. BEFORE THE FLORIDA PUBLIC SERVICE COMMISSION In Re: Energy Conservation Cost Recovery Factors DOCKET? Direct Testimony of Jerry H. Melendy, Jr. On Behalf of 11 Gas System, Inc., US Highway 27 South, Sebring, FL A. My name is Jerry H. Melendy, Jr. My business address is Sebring 13 A. I am President of Sebring Gas Company, Inc. (the "Company"). 17 PROGRAMS? 14 Q. ARE YOU FAMILIAR WITH THE COMPANY'S APPROVED 12 Q. BY WHOM ARE YOU EMPLOYED AND IN WHAT CAPACITY? 19 Q. WHAT IS THE PURPOSE OF YOUR TESTIMONY IN THIS 18 A. Yes. 9 Q. PLEASE STATE YOUR NAME AND BUSINESS ADDRESS. energy conservation programs in 2015 and I will provide the AND COSTS THAT ARE ASSOCIATED WITH THESE ENERGY CONSERVATION PROGRAMS AND THE REVENUES My testimony will present actual and projected expenditures and revenues related to promoting and administering the Company's Docket No GU August24,2015

5 Q. A for the January 2014 through December 2014 period. Actual program costs are provided for the period January 1, 2015 through June 2015, as well as the costs the Company expects to incur from July 1, 2015 conservation costs. Program. 2 Appliance Replacement Program and the Commercial Retention adjusted net true-up amount associated with program administration WITH THESE PROGRAMS? applied to consumer bills during the period January 1, 2016 through Yes. Summaries of the Company's four approved programs are through December 31, I will also indicate the total costs the CONSERVATION PROGRAMS AND THE COSTS ASSOCIATED Company seeks to recover through its conservation factors during the period January 1, 2016 through December 31, Finally, I will also the Commercial New Construction Program, the Commercial propose the energy conservation cost recovery factors which, when included in Schedule C-5 of Exhibit JHM-1. Included are the Residential New Construction Program, the Residential Appliance December 31, 2016, will permit recovery of the Company's total Replacement Program, the Residential Appliance Retention Program, HAVE YOU PREPARED A SUMMARY OF THE COMPANY'S

6 Q. HAVE YOU PREPARED SCHEDULES THAT INCLUDE THE COMPANY'S CONSERVATION PROGRAM EXPENDITURES FOR THE CURRENT (2015) AND PROJECTED (2016) PERIODS? 4 A. Yes. Schedule C-3, Exhibit JHM-1provides actual conservation 5 expenses for the January 2015 through June 2015 period and A. DECEMBER 31, 2016? 3 11 A. Yes. Schedule C-3 (page 4 of 5), Exhibit JHM-1, provides actual 12 conservation revenue for the January 2015 through June 2015 period, 13 and projected conservation revenues for the July 2015 through 10 COMPANY'S CONSERVATION RELATED REVENUES FOR 2015? 14 December 2015 period. 15 Q. WHAT IS THE COMPANY'S ESTIMATED TRUE-UP FOR THE 16 PERIOD JANUARY 1, 2015 THROUGH DECEMBER 31, 2015? 17 A. The Company is under-recovered by $5,585, as calculated on 18 Schedule C-3, Page 4, Line 11, Exhibit JHM Q. WHAT IS THE TOTAL COST THE COMPANY SEEKS TO 6 projected expenses for the July 2015 through December 2015 period. 7 Projected expenses for the January 2016 through December period are included in Schedule C-2, Exhibit JHM-1. 9 Q. HAVE YOU PREPARED A SCHEDULE THAT INCLUDES THE As indicated on Schedule C-1, Exhibit JHM-1, the Company seeks to RECOVER DURING THE PERIOD JANUARY 1, 2016 THROUGH recover $28,775 during the referenced period. This amount represents

7 1 the projected costs of $23,190 to be incurred during 2016, plus the 2 estimated true-up of $5,585 for calendar year Q. WHAT ARE THE COMPANY'S PROPOSED ENERGY 4 CONSERVATION COST RECOVERY FACTORS FOR EACH RATE A. Q. A. PERIOD? System are: TS-1 TS-2 TS-3 TS-4 Yes. 4 $ $ $ $ The Conservation Adjustment Factors per therm for Sebring Gas CLASS FOR THE JANUARY 2016 THROUGH DECEMBER 2016 Schedule C-1, Exhibit JHM-1, provides the calculation of the Company's proposed ECCR factors for DOES THIS CONCLUDE YOUR TESTIMONY?

8 Revised Schedule C-1, Page 1 ofl ENERGY CONSERVATION ADJUSTMENT SUMMARY OF COST RECOVERY CLAUSE CALCULATION JANUARY 2015 THROUGH DECEMBER 2015 COMPANY: ECCR 2016 PROJECTIONS Exhibit JHM-1 Page 1 of23 l. TOTAL INCREMENTAL COSTS (SCHEDULE C-2, PAGEl) 2. TRUE-UP (SCHEDULE C-3, PAGE 4, LINE 11) 3. TOTAL (LINE 1 AND 2) $ 23,190 $ 5,585 $ 28,775 TOTAL CUSTOMER CUST& I RATE THERM CHARGE DELIVERY DELIVERY CHG ECCR 1SCHEDULE BILLS SALES REVENUES CHARGE REVENUE REVENUES T5-1 5,034 38,287 $46,712 $23,296 $70,008 $3,934 T ,407 $7,626 $8,587 $16,213 $911 TS ,619 $33,238 $156,187 $189,425 $10,644 TS ,185 $62,264 $174,181 $236;445 $13,286 ECCRAS% OF TOTAL REVENUES 5.62% 5.62% 5.62% 5.62% DOLLARS TAX THE~M FACTOR CONSERV FACTOR TOTAL 7, ,499 $149,839 $362,252 $512,091 $28,775

9 Schedule C-2 COMPANY: Page 1 of2 Docket No. 15()()()4.GU ECCR 2016 PROJECTIONS Exhibit JHM-1 Page 2 of23 ESTIMATED CONSERVATION PROGRAM COSTS BY PROGRAM BY MONTH JANUARY 2016 THROUGH DECEMBER 2016 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC PROGRAM TOTAL 1 RESIDENTIAL NEW CONSTRUCTION $252 $252 $252 $252 $252 $252 $252 $252 $251 $251 $251 $251 $3,020 t RESIDENTlAL APPUANCE REPlACEMENT $1,302 $1,302 $1,302 $1,302 $1,302 $1,302 $1,302 $1,302 $1,301 $1,301 $1,301 $1,301 $15,620 3 RESIDENTIAL APPLIANCE RETENTION $379 $379 $379 $379 $379 $:379 $379 $379 $379 $379 $380 $380 $4;550 ~ COMMEROAL NEW CONSTRUCTION $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 COMMERCIAL APPLIANCE REPLACEMENT $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 6 COMMERCIAL RmN1lON $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 ~OTALALL PROGRAMS $1,933 $1,933 $1,933 $1,933 $1,933 $1,933 $1,933 $1,933 $1,931 $1,931 $1,932 $1i932 $23,190

10 Schedule C-2 Page 2 of2 COMPANY: Docket No GU ECCR 2015 PROJECTIONS Exhibit JHM-1 Page 3 of23 ESTIMATED CONSERVATION PROGRAM COSTS PER PROGRAM JANUARY 2016 THROUGH DECEMBER 2016 PROGRAM CAPITAL PAYROll MATERIAL ADVERTISING INCENTIVES INVESTMENT &SUPPLIES OUTSIDE VEHICLE OTHER SERVICES TOTAL 1 RESIDENTIAL NEW CONSTRUCTION $0 $2,747 $0 $113 $0 $160 $0 $0 $3, RESIDENTIAL APPLIANCE REPLACEMENT so $2,747 $0 $113 $12,601 $159 $0. $0 $15, RESIDENTIAL APPLIANCE RETENTION r COMMERCIAL NEW CONSTRUCTION $0 $2,747 $0 $113 $1,530 $0 $0 $0 $0 $0 $160 $0 $0 $0 $0 $0 $4,550 $0 'S COMMERCIAL APPLIANCE REPLACEMENT $0 $0 $0 $0 $0 $0 $0 $0 $0 6 COMMERCIAL RETENTION $0 $0 $0 $0 $.0 $0 $0 $0 $0 PROGRAM COSTS $0 $8,242 $0 $339 $14,131 $479 $.0 $0: $23,191

11 Schedule C-3 COMPANY: Page 1 of 5 ECCR 2016 PROJECTIONS Exhibit JHM-1 Page 4of23 ESTIMATED CONSERVATION PROGRAM COSTS PER PROGRAM JANUARY 2015 THROUGH DECEMBER 2015 CAPITAL PAYROLL MATERIAL ADVERTISING INCENTIVES OUTSIDE VEHICLE OTHER TOTAL PROGRAM INVESTMENT &SUPPLIES SERVICES 1 RESIDENTIAL NEW CONSTRUCTION A. ACTUAL $0 $1,882 $0 $133 $0 $38 $0 $0 $2,053 B. ESTIMATED ~ ~1,350 ~ ~ ~ $150 SQ. ~ $1,500 OTAL :$0 $3,232 $0 $133 $0 $188 $0 $0 $3,553 2 RESIDENTIAL APPLIANCE REPLACEMENT A. ACTUAL $0 $1,882 $0 $133 $10,925 $37 $0 $0 $12~977 B. ESTIMATED ~ S-1,350 ~ S.Q ~3,900 $150 SQ ~ 5400 $0 $3,232 $0 $133 $14,825 $187 $0 $0 $18,377 3 RESIDENTIAL APPLIANCE RETENTION.ACTUAL $0 $1,882 $0 $133 $1,150 $38 $0 $0 $3,203 ~ S1,3so SQ. SQ. $650 $150 ~ SQ S2,15ol $0 $3,232 $0 $133 $1,800 $188 $0 $0 $5,353 COMMERCIAL NEW CONSTRUCTION A. ACTUAL $0 $0 $0 $0 $0 $568 $0 $0 $568 SQ. SQ. ~ SQ. ~ $200 ~ SQ $200 $0 $0 $0 $0 $0 $768 $0 $0 $768 SUB-TOTAL $0 $9,696 $0 $399 $16,625 $1,331 $0 $0 $28,0Si

12 Schedule C-3 COMPANY: Page 2 ofs ECCR 2016 PROJECTIONS ExhibitJHM-1 Page 5 of 23 ESTIMATED CONSERVATION PROGRAM COSTS PER PROGRAM JANUARY 2015 THROUGH DECEMBER 2015 CAPITAL PAYROLL MATERIAL ADVERTISING INCENTIVES OUTSIDE VEHICLE OTHER TOTAL PROGRAM INVESTMENT &SUPPUES SERVICES rub-total- PREVIOUS PAGE $0 $9,696 $0 $399 $16,625 $1,331 $0 $0 $28,051 ~COMMERCIAL APPLIANCE REPLACE.ACTUAL $0 $0 $0 $0 $0 $568 $0 $0 $568 B. ESTIMATED ~ ~ ~ ~ ~ $200 ~ ~ $200 TOTAL $0 so $0 $0 $0 $768 $0 $0 $768 6 COMMERCIAL RETENTION ia.actual $0 $0 $0 $0 $0 $570 $0 $0 $570 B. ESTIMATED ~ ~ ~ ~ ~ $200 ~ SQ $200!TOTAL so $0 $0 $0 $0 $770 $0 $0 $770 PROGRAM COSTS $0 $9,696 so $399 $16,625 $2,869 $0 $0 $29,589

13 Schedule C-3 Page 3 of 5 COMPANY: ECCR 2016 PROJECTIONS Exhibit JHM-1 Page 6 of 23 CONSERVATION PROGRAM COSTS BY PROGRAM ACTUAL/ ESTIMATED JANUARY 2015 THROUGH DECEMBER 2015 PROGRAM JAN 2015 FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL 1 RESIDENTIAL NEW CO.NSTRUCTION $270 $400 $266 $270 $307 $270 $270 $300 $300 $300 $300 $300 $3,553 i RESIDENTIAL APPLIANCE REPLACEMENT 3 RESIDENTIAL CUSTOMER RETENTION r COMMERCIAL NEW CONSTRUCTION 5 COMMERCIAL APPLI.AN~E REPLACE 6 COMMERCIAL RETENTION $2,845. $1,750 $5,915 $1,620 $307 $270 $270 $270 $470 $400 $366 $770 $307 $620 $270 $430 $79 $0 $31 $421 $37 $0 $0 so $79 $0 $31 $421 $37 $0 $0 $0 $80 $0 $31 $421 $38 $0 $0 $0 $945 $945 $1,620 $1,620 $18,377 $430 $430 $430 $430 $5,353 $50 $50 $50 $50 $768 $50 $50 $50 $50 $768 $50 $50 $50 $50 $770!TOTAL ALL PROGRAMS $3,823 $2,550 $6,640 $3,923 $1,033 $1,160 $810 $1,000 $1,825 $1,8~ $2,500 $2,500 $29,5891

14 Revised Schedule C-3, COMPANY: Page4 of5 ENERGY CONSERVATION ADJUSTMENT ECCR 2016 PROJECTIONS JANUARY 2015 THROUGH DECEMBER 2015 Exhibit JHM-1 P~ge 7 of23 CONSERVATION JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC REVENUES TOTAL RCS AUDIT FEES OTHER PROGRAM REV ECCR REVENUE (4,069) (4,101) (3,966) (221) (3,068) (3,145) (2,961) (3,006} (3,352} (3,527) (3,864) (4,192) (39,472) 2. CONSERV. ADJ. REV. (NET OF REV. TAXES) TOTAL REVENUES (4,069) [4,101) (3,966) (221) (3,058) (3,145) (2,961) (3,006) (3,352) {3,527) {3,864} (4,192) {39,4n) 4. PRIOR PERIOD TRUE-UP NOT APPLIC. TO PERIOD 1,288 1,288 1,289 1,289 1,289 1r289 1, ,289 1,289 1,289 1, CONSERV. REVS. PPLIC. TO PERIOD {2,781) (2,813) (2,6n) 1,068 (1,779) (1,856} (1,672) (1,717} (2,063) (2,238) (2,575) (2,903) (24,006). CONSERVATION EXPS. (FORM C-3, PAGE 3) 3,823 2,550 6,640 3,923 1,033 1, ,000 1,825 1,825 2,500. 2,500 ~ 17. TRUE-UP THIS PERIOD 1,042 (263) 3,963 4,991 (746) (696) (862) (717) (238) (413) (75) (403) 5,583 I I 8. INTEREST THIS PERIOD (C-3, PAGE 5) (1} (1) TRUE~UP & INT BEGIN OF MONTH 15,466 16,507 16,243 20;206 25,197 24,451 23,756 22,895 22,179 21,942 21,529 21, PRIOR TRUE-UP COLLECT/ (REFUND) (1,288) {1,288) ( ) (1,289) (1,289} (1,289} (1.289) (1,289) u.,289l (1,289) (1,289) (1,289) 11. END OF PERIOD TOTAL NET TRUE-UP 16,507 16,243 20,206 25,197 24,451 23,756 22,895 22,179 21,942 21, ,051 5,585

15 Revised Schedule C-3, COMPANY: Page 5 of 5 Docket No GU CALCULATtON OF TRUE-UP AND INTEREST PROVISION ECCR 2016 PROJECTIONS JANUARY 2015 THROUGH DECEMBER 2015 Exhibit JHM 1 Page 8 of23 INTEREST JAN FEB MAR APR MAY JUN JUl AUG SEP OCT NOV DEC PROVISION TOTAL BEGINNING TRUE-UP 15,466 16,507 16,243 20;206 25,197 24,451 23,756 22,~5 22,179 21,942 21,529 21,454 END. T-UP BEFORE INT. 16,508 16,244 20,206 25,197 24,451 23,755 22,894 22,178 21,941 21,529 21,454 21,051 (C3,4) rotal BEG. & END. T UP 31,974 32,751 36,449 45,403 49,648 48,206 46,650 45,073 44,120 43, ,505 1AVERAGE TRUE-UP 15,987 16,376 18,225 22,702 24,824 24,103 23,325 22,537 22,060 21,736 21,492 21,253 INT. RATE FIRST DAY OF REPORTING BUSINESS MTH. 0.10% 0.10% 0.09% 0.09% 0.06% 0.10% o;pscx. 0.08% 0.08% 0.08% 0.08% 0.08% INT. RATE-FIRST DAY OF SUBSEQUENT BUSINESS MTH. 0.10% 0.09% 0.09% 0.06% 0.10% 0.08% 0.08% 0.08% O.Q8% 0.08-% 0.08% 0.08% OTAL 0.20% 0.19% 0.18% 0.15% ().16% 0.18%.0.16% 0.16% 0.16% 0.16% 0.16% 0.16% AVG INTEREST RATE 0.10% 0.10% 0.09% 0.08% o;08% 0.09% 0.08% 0.08% 0.08% 0.08% 0.08% 0.08% MONTHLYAVG. INT. RATE 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% INTEREST PROVISION (1.00) {1.00)

16 Schedule C-4 Page 1 of 15 Program Title Reporting Period Program Description $500 Gas Heating $150 Gas Cooking ECCR 2016 Projections The Company projects that total expenditures will equal $3,553 for the 2015 annual period. January 2015 through December 2015 This program is designed to increase the overall penetration of natural gas in the single family to any home builder or developer who installs the below listed energy efficient appliances. Current Approved Allowances the period July through December $350 Gas Storage Tank Water Heating $400 Gas High Efficiency Storage tank Water Heater $550 Tankless Water Heating $100 Gas Clothes Drying and multi-family residential construction markets of (the Company)'s During the six-month reporting period January through June 2015, no new home allowances service territory by expanding consumer energy options in new homes. Incentives are offered Residential New Construction Program were paid. The Company projects no new home construction will qualify for allowances during Program Activity and Projections Program Fiscal Expenditures During the six-months reporting period, actual expenditures for this program totaled $1,783. Program Description and Progress Exhibit JHM-1, Page 9 of 23 COMPANY:

17 Schedule C-4 Page 2 of 15 Program Title Reporting Period Program Description appliances. $725 Gas Heating $200 Gas Cooking ECCR 2016 Projections replacement allowances will be paid during the period July through December This program is designed to encourage the replacement of Inefficient non-natural gas the replacement of non-gas appliances through the purchase of energy efficient natural gas January 2015 through December 2015 residential appliances with energy efficient natural gas appliances. Incentives are offered for $150 Gas Clothes Drying $550 Gas High Efficiency Storage tank Water Heater Residential Appliance Replacement Program $675 Tankless Water Heating Current Approved Allowances appliance replacement allowances were paid. The Company projects six (6) appliance $500 Gas Storage Tank Water Heating Program Activity and Projections During the six-month reporting period January through June 2015, nineteen (19) residential Program Description and Progress COMPANY: Exhibit JHM-1, Page 10 of 23

18 Schedule C-4 Page 3 of 15 ECCR 2016 Projections The Company projects that total expenditures will equal $18,377 for the 2015 annual period. Residential Appliance Replacement Program, continued from page 2 of 15 Program Fiscal Expenditures During the six-months reporting period, actual expenditures for this program totaled $12,708. Program Description and Progress COMPANY: Exhibit JHM-1, Page 11 of 23

19 Schedule C-4 Page 4 of 15 Program Title Reporting Period COMPANY: ECCR 2016 Projections Exhibit JHM-1, Page 12 of 23 The Company projects that total expenditures will equal $5,353 for the 2016 annual period. January 2015 through December 2015 Residential Appliance Retention Program This program is designed to encourage existing customers to continue to use natural gas in the our county's resources effectively, this program offers cash allowances to the customer. Current Approved Allowances Program Description $100 Gas Cooking $350 Gas Storage Tank Water Heating $100 Gas Clothes Drying $400 Gas High Efficiency Storage tank Water Heater home. As an incentive to continue to provide substantial benefits to the customer and utilize $550 Tankless Water Heating $500 Gas Heating Program Activity and Projections During the six-month reporting period January through June 2015, six (6) residential appliance retention allowances were paid. The Company projects two (2) residential appliance retention allowances will be paid during the period July through December Program Fiscal Expenditures During the six-months reporting period, actual expenditures for this program totaled $3,203. Program Description and Progress

20 Schedule C-4 Page 5 of 15 Program Title Reporting Period Program Description Program Description and Progress ECCR 2016 Projections various incentive programs. January 2015 through December 2015 The object of this program is to inform consumers about the Company's energy conservation Conservation Education Program The Company continues to communicate with several homebuilders, appliance retailers and supported by the Florida Natural Gas Association. In the year 2010 the Company began a programs and provide general information on energy efficiency measures that will reduce a part-time outside contract sales group in an attempt to increase program participation. In energy consumption and costs. 2009, the Company began participation in the Get Gas Florida consumer education program local builder association meetings, participating in their events. The Company continues to use contractors in its service area to provide information on its programs. The Company attends Program Activity and Projections: program of direct mailings to inform the public located within its service area of the benefit of using natural gas and the awareness of the programs offered by the Company. Program Fiscal Expenditures: During the year 2015, the Company booked the expenditures for t he education program to the COMPANY: Exhibit JHM-1, Page 13 of 23

21 Schedule C-4 Page 6 of 15 COMPANY: ECCR 2016 Projections Exhibit JHM-1, Page 14 of 23 Program Description and Progress Program Title Small Commercial Food Service Reporting Period January 2015 through December 2015 Program Description This program is designed to encourage owners and operators of Small Commercial Food Service establishments to purchase energy efficient natural gas appliances through the offering of commercial appliance rebates. Current Approved Allowances New Construction: Tank W/H $1,000 Tankless W/H $2,000 Range/Oven $1,000 Fryer $3,000 Retrofit: Tank W/H $1,500 Tankless W/H $2,500 Range/Oven $1,500 Fryer $3,000 Retention: Tank W/H $1,000 Tankless W /H $2,000 Range/Oven $1,000 Fryer $3,000

22 Schedule C-4 Page 7 of 15 Commercial Retention $768 $768 $768 ECCR 2016 Projections The Small Commercial Food Service Program had no activity has occur in Commercial New Construction Commercial Appliance Replacement During the year 2015, the various commercial programs were combined into the following Program Activity and Projections Small Commercial Service Program, continued from page 6 of 15 accounts, and anticipated the following expenditures for the year 2015: Program Fiscal Expenditures COMPANY: Exhibit JHM-1, Page 15 of 23

23 Schedule C-4 Page 8 of15 Program Title Reporting Period Program Description New Construction: Tank W/H $11500 Tankless W/H $2,000 Retrofit: TankW/H $2,000 Tankless W /H $2,500 Retention: Tank W/H $1,500 Tankless W /H $2,000 ECCR 2016 Projections January 2015 through December 2015 This program is designed to encourage owners and operators of Large Commercial Non-Food Service establishments to purchase energy efficient natural gas appliances through the offering of commercial appliance rebates. Large Commercial Non-Food Service Current Approved Allowances Program Description and Progress COMPANY: Exhibit JHM-1, Page 16 of 23

24 Schedule C-4 Page 9 of 15 Commercial Retention $768 $768 $768 ECCR 2016 Projections The Large Commercial Non-Food Service Program had no activity occur in Commercial New Construction Commercial Appliance Replacement During the year 2015, the various commercial programs were combined into the following Program Activity and Projections Large Commercial Non-Food Service Program, continued from page 8 of 15 accounts, and anticipated the following expenditures for the year 2015: Program Fiscal Expenditures COMPANY: Exhibit JHM-1, Page 17 of 23

25 Schedule C-4 Page 10 of 15 Program Title large Commercial Food Service Reporting Period January 2015 through December 2015 Program Description commercial appliance rebates. Current Approved Allowances New Construction: Tank W/H $1,500 Tankless W/H $2,000 Range/Oven $1,500 Fryer $3,000 Retrofit: Tank W/H $2,000 Tankless W/H $2,500 Range/Oven $1,500 Fryer $3,000 Retention: Tank W/H $1,500 Tankless W/H $2,000 Range/Oven $1,500 Fryer $3,000 Program Description and Progress COMPANY: ECCR 2016 Projections Exh ibit JHM-1, Page 18 of 23 This program is designed to encourage owners and operators of Large Commercial Food Service establishments to purchase energy efficient natural gas appliances through the offering of

26 Schedule C-4 Page 11 of 15 COMPANY: ECCR 2016 Projections Exhibit JHM-1, Page 19 of 23 Large Commercial Food Service Program, continued from page 10 of 15 Program Activity and Projections The Large Commercial Food Service Program had no activity occur in Program Fiscal Expenditures During the year 2015, the various commercial programs were combined into the following accounts, and anticipated the following expenditures for the year 2015: Commercial New Construction Commercial Appliance Replacement Commercial Retention $768 $768 $768

27 Schedule C-4 Page 12 of 15 Program Title large Commercial Hospitality Reporting Period January 2015 through December 2015 Program Description commercial appliance rebates. Current Approved Allowances New Construction: Tank W/H $1,500 Tankless W/H $2,000 Range/Oven $1,500 Fryer $3,000 Dryer $1,500 Retrofit: Tank W/H $2,000 Tankless W/H $2,500 Range/Oven $1,500 Fryer $3,000 Dryer $1,500 Program Description and Progress COMPANY: ECCR 2016 Projections Exhibit JHM-1, Page 20 of 23 This program is designed to encourage owners and operators of large Commercial Hospitality establishments to purchase energy efficient natural gas appliances through the offering of

28 Schedule C-4 Page 13 of 15 large Commercial Hospitality Program, continued from page 12 of 15 Retention: Tank W/H Tankless W/H $2,000 Range/Oven $1,500 Fryer $3,000 Dryer ' $1,500 Commercial Retention $768 $768 $768 ECCR 2016 Projections The large Commercial Hospitality Program had no activity occur in accounts, and anticipated the following expenditures for the year 2015: Commercial New Construction Commercial Appliance Replacement Program Activity and Projections Program Fiscal Expenditures During the year 2015, the various commercial programs were combined into the following COMPANY: Exhibit JHM-1, Page 21 of 23

29 Schedule C-4 Page 14 of 15 COMPANY: ECCR 2016 Projections Exhibit JHM-1, Page 22 of 23 Program Description and Progress Program Title Large Commercial Cleaning Service Reporting Period January 2015 through December 2015 Program Description This program is designed to encourage owners and operators of Large Commercial Hospitality establishments to purchase energy efficient natural gas appliances through the offering of commercial appliance rebates. Current Approved Allowances New Construction: Tank W/H $1,500 Tankless W /H $2,000 Dryer $1,500 Retrofit: Tank W/H $2,000 Tankless W/H $2,500 Range/Oven $1,500 Retention: Tank W/H $1,500 Tankless W/H $2,000 Dryer ' $1,500

30 Schedule C-4 Page 15 of 15 Commercial Retention $768 $768 $768 ECCR 2016 Projections The Large Commercial Cleaning Program had no activity occur in accounts, and anticipated the following expenditures for the year 2015: Commercial New Construction Commercial Appliance Replacement Program Activity and Projections Large Commercial Cleaning Service Program, continued from page 14 of 15 Program Fiscal Expenditures During the year 2015, the various commercial programs were combined into the following COMPANY: Exhibit JHM-1, Page 23 of 23